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A-LevelAccountingAccounting for non-current assets9706/12 · Oct/Nov 2024 · Q61 Mark

Non-current assets can be depreciated using a number of methods. How is the most appropriate method decided?

AThe method chosen improves the profit for the year of the business.
BThe method chosen is easily understood by the users of financial information.
CThe method chosen is easy to calculate.
DThe method chosen reflects the pattern of use of the non-current assets.

✓ Correct answer

D: The method chosen reflects the pattern of use of the non-current assets.

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About this question

Topic
Accounting for non-current assets, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Oct/Nov 2024 Paper 1 Variant 2, question 6.

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